Question:

How to get information on real estate settlement costs and procedures?

Answer:

If you have decided to finally buy a house, it will be important that you acquaint yourself with the home purchasing process and the real estate settlement costs.

HUD Booklet Explains Real Estate Settlement Costs and Procedures

Lenders and brokers are required by the Real Estate Settlement Procedures Act ("RESPA") to provide you with a special HUD-published booklet containing a lot of important information on mortgage loan closing and settlement costs, as well as how to shop best for a home loan. This brochure is very useful to read prior to obtaining home loan financing. It can be downloaded from the official HUD webpage, or from real estate agents and loan officers.

Usually, when you find a home you want to buy you go through prequalification to see if a lender will qualify you for the desired loan amount and LTV. If preapproval is successful, you can sign the Agreement of Sale with the owner, and when the loan is extended, the mortgage note is signed and upon settlement the title is transferred to you.

On many occasions throughout the real estate purchasing process up to closing, also called settlement, the borrower will have the power to negotiate loan terms and some settlement costs. The HUD booklet will walk you through the basic real estate settlement costs and procedures.

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